2024

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The National Digital Economy and E-Governance Act, 2024, (Draft), is a comprehensive legal framework designed to facilitate the digital transformation of economic and governance processes.&nbsp; 
The creators believe that the policy document will streamline electronic transactions, enhance digital government services, and ensure the integrity and security of digital interactions.&nbsp; 
At the unveiling event, the Minister of Communications, Innovation and Digital Economy, <a href="https://x.com/bosuntijani/status/1816079057047499070" target="_blank">Bosun Tijani,</a> noted that the document is still a draft and that it would be “taken around the country to ensure inclusive and wide-ranging input and understanding, and its impact and benefits to the growth of our digital economy”. 
The purpose of this article is to critically examine the draft and highlight the strengths of the National Digital Economy and E-Governance Act, its weaknesses and list its potential use cases in the country. 
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 National Digital Economy and E-Governance Act, 2024
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<h4 id="strengths-of-the-national-digital-economy-and-e-governance-act" class="wp-block-heading">Strengths of the National Digital Economy and E-Governance Act</h4> 
1. Comprehensive coverage of Electronic Transactions 
The<a href="https://fmcide.gov.ng/wp-content/uploads/2024/07/National%20Digital%20Economy%20and%20E-Governance%20Act,%202024.pdf" target="_blank" rel="noopener"> Act</a> will provide a robust legal foundation for the recognition and enforcement of electronic transactions. It will ensure that electronic communications and records are legally valid and enforceable, promoting confidence in digital interactions.&nbsp; 
For instance, Part I (1), “An electronic communication shall not be denied legal effect, validity, admissibility, or enforceability solely on the ground that it is rendered or made available in electronic form.”&nbsp; 
This provision will eliminate ambiguity regarding the legal status of electronic documents, fostering a secure environment for e-commerce and digital contracts. 
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 Bosun Tijani, Nigeria’s Minister of Communications, Innovation and Digital Economy
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2. Facilitation of Electronic Contracts 
The Act will explicitly address the formation and validity of electronic contracts, ensuring that digital agreements are legally binding.&nbsp; 
Part II, (11), highlights that “a declaration of intent or other statement shall not be denied legal effect, validity or enforceability on the ground that it is in the form of an electronic communication.“ 
This section removes barriers to the use of electronic contracts, encouraging businesses and individuals to engage in digital transactions with confidence. 
3. Recognition of Electronic Signatures and Time Stamps 
The <a href="https://fmcide.gov.ng/wp-content/uploads/2024/07/National%20Digital%20Economy%20and%20E-Governance%20Act,%202024.pdf" target="_blank" rel="noopener">National Digital Economy and E-Governance Act, 2024</a>, will acknowledge the importance of electronic signatures and time stamps in verifying the authenticity and timing of electronic communications.&nbsp; 
For instance, Part III (19) states that “Unless otherwise provided by law, the parties to an electronic transaction may agree to the use of a particular method or form of electronic signature or security procedure.” 
Part IV (22, 1) states – “An electronic time stamp shall not be denied legal effect and admissibility as evidence in legal proceedings because it is in an electronic form or that it does not meet the requirements set out in Section 27 of this Act.” 
This provision supports the use of digital signatures, enhancing the security and reliability of electronic transactions. 
4. Support for Consumer Protection 
The Act includes specific provisions aimed at protecting consumers in electronic commerce.&nbsp; 
Part VII (36) requires vendors to provide clear and accurate information about their products and services. 
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<ol> 
 <li>(1) A service provider or vendor shall provide a consumer with sufficient and relevant information on the products, and services, to enable informed decisions on the part of that&nbsp;consumer. Such information shall be:</li> 
 <li>(a) clearly presented in a language the consumer understands;</li> 
 <li>(b) accurate;</li> 
 <li>(c) conspicuously displayed at appropriate stages of the consumer’s decision-making, particularly before the consumer confirms transactions or provides any personal information; and</li> 
 <li>(d) capable of being saved or printed by the consumer.</li> 
</ol> 
Also, Section 37 allows consumers to cancel contracts before processing, offering a safeguard against fraudulent or misleading transactions. 
5. Promotion of Digital Government 
The <a href="https://fmcide.gov.ng/wp-content/uploads/2024/07/National%20Digital%20Economy%20and%20E-Governance%20Act,%202024.pdf" target="_blank" rel="noopener">National Digital Economy and E-Governance Act, 2024</a>, will mandate the use of electronic records and signatures within government agencies, promoting efficiency and transparency.&nbsp; 
Part VIII 44 states that: 
<ul> 
 <li>(1) Any public institution that –</li> 
 <li>(a) accepts the filing of documents, or obtains information in any form;</li> 
 <li>(b) requires that documents be created or retained;</li> 
 <li>(c) requires documents, records or information to be provided or retained in their original form;</li> 
 <li>(d) issues any permit, licence or approval; or</li> 
 <li>(e) requires payment of any fee, charge or other amounts by any method and manner of payment may carry out such function by electronic form.</li> 
</ul> 
This provision facilitates the digitisation of government services, making them more accessible and user-friendly. 
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6. Protection of Consumer Data 
The Act includes provisions for consumer protection.&nbsp; 
Section 38 mentions the protection of consumer personal information.&nbsp; 
<ol> 
 <li>– A service provider or vendor shall ensure confidentiality of all personal information collected from the consumer EXCEPT where the consent of the consumer is obtained or where the law demands disclosure.</li> 
 <li>– A service provider or vendor shall make public its privacy policy and make it easily accessible to the consumer before the commencement of the contract and whenever personal information is requested or collected.&nbsp;</li> 
</ol> 
Read also: <a href="https://technext24.com/2024/07/03/nimc-blames-breach-on-licensed-people/" target="_blank" rel="noreferrer noopener">Data for ₦100: Head of IT says NIMC not compromised, blames breach possibility on ‘licensed partners’</a> 
7. Penalties&nbsp; 
The Act imposes several obligations on businesses and government agencies, but it does not clearly outline the mechanisms for enforcement and compliance.&nbsp; 
For example, Section 6 of Part I requires the retention of documents in electronic form, but it does not specify the penalties for non-compliance.&nbsp; 
This lack of clarity may undermine the effectiveness of the Act and hinder its enforcement. 
However, in Part XII, 61 (1), there are penalties for “any person or corporate body who contravenes or fails to comply with the provisions of the Act commits an offence.” 
It also states that:&nbsp; 
61 (2, c) – A body corporate, firm or other association of individuals who commits an offence under this Act is liable on conviction, to a fine not less than ₦10,000,000.00. 
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<h4 id="weaknesses" class="wp-block-heading">Weaknesses</h4> 
1. Implementation challenges for Digital Government 
The Act’s requirements for digital government services may pose implementation challenges, particularly in regions with limited technological infrastructure.&nbsp; Section 50 of the act mandates that public institutions comply with electronic data management regulations, which may be difficult without adequate resources and support.&nbsp; 
This could result in disparities in the quality and accessibility of digital government services. 
<h4 id="possible-use-cases" class="wp-block-heading">Possible use cases</h4> 
1. E-commerce and online business 
The Act will provide a solid legal foundation for e-commerce and online business transactions. Recognising the validity of electronic contracts and signatures enables businesses to conduct transactions securely and efficiently. This is particularly beneficial for startups and SMEs that rely on digital platforms to reach a wider audience. 
2. Digital government services 
The Act will support digitising government services, making them more accessible to citizens.&nbsp; 
For instance, online applications for permits, licences, and government benefits can be streamlined through the use of electronic records and signatures. This enhances the efficiency and transparency of government operations. 
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3. Cross-border transactions 
The Act’s provisions for the recognition of foreign electronic signatures and transferable records facilitate cross-border transactions.&nbsp; 
This promotes international trade and cooperation by providing a legal framework for cross-border digital transactions. 
4. Legal and judicial proceedings 
The Act ensures that electronic records and signatures are admissible in legal and judicial proceedings, thereby supporting the digital transformation of the legal system.&nbsp; 
Section 9 of Part I explicitly states that the admissibility of electronic records and signatures shall not be denied because they are in electronic form.&nbsp; 
This provision is crucial for the modernisation of court processes and the efficient resolution of legal disputes. 
5. Consumer rights and protection 
The Act empowers consumers by providing them with clear rights and protections in electronic commerce.&nbsp; 
For example, Section 37 allows consumers to cancel contracts before processing, offering a safeguard against fraudulent transactions. This enhances consumer confidence in digital markets and promotes fair trading practices. 
<h4 id="overall-what-do-we-think" class="wp-block-heading">Overall, what do we think?&nbsp;</h4> 
The <a href="https://fmcide.gov.ng/wp-content/uploads/2024/07/National%20Digital%20Economy%20and%20E-Governance%20Act,%202024.pdf" target="_blank" rel="noopener">National Digital Economy and E-Governance Act, 2024, </a>represents a significant step towards the digital transformation of economic and governance processes.&nbsp; 
Its strengths lie in the comprehensive legal recognition of electronic transactions, the facilitation of electronic contracts, the promotion of digital government services, and the protection of consumer rights.&nbsp; 
However, the Act also has certain weaknesses, including ambiguities in technical standards and potential implementation challenges.

A detailed review of the newly unveiled 2024 National Digital Economy and E-Governance Act

Technext.ng

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